Tax: Exchange of Information Agreement between the Governments of Jersey and Republic of the United Mexican States

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A decision made 21 December 2010 regarding: Tax: Exchange of Information Agreement between the Governments of Jersey and Republic of the United Mexican States.

Decision Reference: MD-C-2010-0100
Decision Summary Title :	Agreement for the exchange of information relating to tax matters between the States of Jersey and the Government of the Republic of the United Mexican States		Date of Decision Summary:	20th December 2010
Decision Summary Author:	Project & Research Officer		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Ratification of the Agreement for the exchange of information relating to tax matters between the States of Jersey and the Government of the Republic of the United Mexican States		Date of Written Report:	20th December 2010
Written Report Author:	Adviser – International Affairs		Written Report : Public or Exempt?	Public
Subject: Agreement for the exchange of information relating to tax matters between the States of Jersey and the Government of the Republic of the United Mexican States.
Decision(s): The Chief Minister, acting on the recommendation of the Council of Ministers, agreed to lodge ‘au Greffe’ a report and proposition seeking ratification of the Agreement for the Exchange of Information Relating to Tax Matters between the Government of the Republic of the United Mexican States and the States of Jersey.
Reason(s) for Decision: The tax information exchange agreement entered into with the Mexican Republic is a continuation of the ongoing programme of signing TIEAs or DTAs with all OECD and G20 member countries. Negotiations with the Government of the Republic of the United Mexican States have produced an agreement on the following: (a) A tax information exchange agreement which is consistent with agreements signed previously with other countries. The agreement provides for the exchange of information on tax matters on request. The agreement will come into force once the parties to the agreement have ratified it, and any necessary legislative steps have been taken;
(b) A joint declaration which recognises that the agreement constitutes a step forward in the global effort to establish an international financial system that is based on transparency and effective exchange of information in tax matters. The joint declaration also recognises Jersey’s “good neighbour” policy, and the Government of the Republic of the United Mexican States has indicated that it will use its best endeavours to ensure that where EU Directives and Regulations concerning the Regulation of Financial Services include provisions referring to the position of third countries, particularly in relation to assessments of equivalence in compliance with EU standards and access to EU markets, Jersey will be treated as fairly and favourably as other third countries. Of particular interest is the statement in the joint declaration that following the entry into force of the TIEA, the Mexican Republic and Jersey will continue the dialogue to examine what measures could be adopted to further enhance and broaden their political and economic relationship including the further examination of undesired tax barriers, and the further extension of the arrangements for information exchange, namely through the negotiation of an agreement for the avoidance of double taxation with respect to certain income of individuals. (c) A memorandum of understanding between the competent authorities of the Mexican Republic and the Government of Jersey which refers to the allocation costs. Most importantly it also states that upon entry into force of the TIEA and in respect of taxes covered by the Agreement, the Mexican authorities shall exclude Jersey from the “list of countries, territories and regions with clearly more favourable tax regimes”, as approved by Ministerial Order No. 150/2004 of 13 February.
Resource Implications: There are no financial or manpower implications.
Action required: The Greffier of the States is requested to lodge ‘au Greffe’ the Agreement for the exchange of information relating to tax matters between the States of Jersey and the Government of the Republic of the United Mexican States, to be taken into consideration.
Signature:		Position: Senator Terry le Sueur, Chief Minister
Date Signed:		Date of Decision (If different from Date Signed):